A.

A fixed asset is classified as 5-year MACRS property and has an initial cost of $41,000 What is the aftertax cash flow from the sale of this asset if the pre-tax salvage value at the end of year 3 is $17,500 and the tax rate is 34 percent?

Year	Five-Year Property Class
1	20.00	%
2	32.00
3	19.20
4	11.52
5	11.52
6	5.76

$15,439.38

$15,558.04

$15,564.72

$15,463.06

B.

A firm has sales for the year of $95,500, costs of $48,500, and taxes of $19,000. What is the operating cash flow for the year?

$21,000

Answer cannot be determined from the information provided.

$28,000

$32,000